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  • Elliot Schwartz

Legal Update Bulletin


Rent Control - 2nd Attempt to Repeal Costa Hawkins

  • This proposition failed to pass on the 2018 ballot on a 60/40% no vote. The same sponsor qualified a new version of the bill for the 2020 ballot.

  • Costa Hawkins was passed in 1995. It restricts local governments from passing rent control on buildings built after 1995.

  • The Proposition aims to allow rent control on 15+ year old properties.

  • It provides local governments with the authority to enact rent control properties that were first occupied over 15 years ago.

  • Rent Control will be prohibited on: (i) properties less than 15 years old; or (ii) units owned by individuals who own 2 or fewer residential dwelling units.

  • Landlords are authorized to raise rent up to 15% over three years after a unit is vacated.

Split Roll Tax - Modified Prop. 13 for Commercial Properties

  • Proposition 13 amended the CA Constitution to limit initial taxes to 1% of the property's value and limited increases to a maximum of 2% per year. It passed by nearly a 2 to 1 margin.

  • The new ballot measure attempts to remove business properties from Prop. 13's tax protections.

  • Requires all business properties to be reassessed to fair market value at the 2022-2023 lien date. The Legislature may phase in this requirement over three years.

  • Requires reassessment of business property to fair market value every three years

  • It is anticipated that the ballot measure will increase business property taxes by $7.5 billion to $12 billion, which would be the single largest tax increase in California history.

  • The bill has qualified for the November 2020 ballot measure. Although very early, current polling is very tight.

For any questions or additional thoughts, feel free to contact me at (310) 909-2308 or at

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